Economic Theory

, Volume 67, Issue 1, pp 179–210 | Cite as

Bequests, estate taxes, and wealth distributions

  • Jing Wan
  • Shenghao ZhuEmail author
Research Article


Bossmann et al. (J Public Econ 91:1247–1271, 2007) found that estate taxes reduce the long-run wealth inequality. This result contrasts with the findings of the previous literature with idiosyncratic labor efficiency risk. We use a decomposition technique, developed by Davies (J Labor Econ 4:538–559, 1986), to reinvestigate the impact of estate taxes on the long-run wealth inequality. We find that the different results of estate taxes are due to the different redistribution effects.


Wealth inequality Bequest motives Estate taxes Lorenz dominance 

JEL Classification

D31 E21 H23 


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2017

Authors and Affiliations

  1. 1.Ma Yinchu School of EconomicsTianjin UniversityTianjinChina
  2. 2.School of Economics and ManagementBeihang UniversityBeijingChina

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